RFA: Ethanol Saves Consumers at the Pump

Cindy Zimmerman

After a long, cold winter many families are ready to hit the road and go somewhere warm and fun for summer vacation, but the Energy Information Administration is already warning drivers that they are likely to see the highest gasoline prices in four years. The good news is that ethanol is helping to offset higher prices at the pump, according to a new analysis from the Renewable Fuels Association (RFA).

Pump prices have already begun to increase, with the average retail price for regular gasoline reaching $2.85/gallon last week, the highest since November 2014. However, the RFA analysis says 10% ethanol blends (E10) alone could save consumers at least $39 billion this year. The analysis of wholesale gasoline and ethanol price data shows that blending E10 has reduced wholesale gasoline prices by at least 27 cents per gallon, or 14%, compared to ethanol-free gasoline (E0).

The cost savings to consumers would be even greater if E15 (15% ethanol, 85% gasoline) were used in approved vehicles nationwide in place of E10, the analysis found. Specifically, the savings would be at least 34 cents per gallon, or 17%, for E15 consumers. Using E15 in approved vehicles would help consumers across the country save approximately $45 billion on gasoline, or $386 per household.

A group of senators this week asked President Trump to authorize sales of E15 this summer, starting June 1. Currently, consumers who are blocked from accessing E15 for three months of the year are unnecessarily spending at least an extra 7 cents per gallon on gasoline. Nationally, that translates to $6 billion, or approximately $80 per household.

Read the analysis here.

E15, Ethanol, Ethanol News, RFA

May is Renewable Fuels Month in Nebraska

Cindy Zimmerman

Nebraska drivers are being encouraged to get their motors running with savings on biofuels every Friday in May at retailers in three major cities to celebrate Renewable Fuels Month in the state.

Select retailers in Omaha, Grand Island and Bellevue are offering discounts on ethanol blends and one location is discounting biodiesel as well.

Renewable Fuels Month is coordinated through the Nebraska Ethanol Board, the Nebraska Corn Board and the Nebraska Soybean Board. Several promotional events are also being posted throughout the month on their social media platforms. Visit www.AmericanEthanolNE.org and www.BiodieselNE.com for more details.

Biodiesel, Ethanol, Ethanol News, Retailers

Senators Push President for E-15 RVP Waiver

Cindy Zimmerman

With a growing number of “small refinery” exemptions being granted by EPA to not-so-small companies, a bipartisan group of senators is asking President Trump to allow 15% ethanol fuel (E-15) to be sold during the summer all over the country starting this year.

In a letter to the president Monday, 18 ethanol state senators made two specific requests. First, they ask that EPA provide an expected timeline for an administrative Reid Vapor Pressure or RVP waiver. Second, they request the agency allow for the sale of E-15 during the upcoming summer driving season in the meantime.

“Lifting these barriers will create a new market for surplus crops, while strengthening our energy security and delivering a jolt to the rural economy,” said Growth Energy CEO Emily Skor. “We continue to be grateful to our champions in Congress for pushing the EPA to make good on the president’s commitment to year-round E15 sales.”

“It is unacceptable for EPA to drag its feet to allow E15 and higher ethanol use year-round while it makes time to rubber stamp so-called ‘hardship’ waivers enabling refiners to escape their legal responsibility to blend ethanol under the Renewable Fuel Standard,” said American Coalition for Ethanol (ACE) CEO Brian Jennings.

A report from Reuters on Monday said that EPA granted a small refinery hardship exemption to CVR Energy, owned by billionaire and presidential advisor Carl Icahn.

ACE, E15, EPA, Ethanol, Ethanol News, Growth Energy, RFS

Biodiesel #1 for Green Fleets

Cindy Zimmerman

And the survey says …. biodiesel is the top alternative fuel choice for fleet trucks.

According to the latest Fleet Purchasing Outlook study conducted by the NTEA – The Association for the Work Truck Industry, 75 percent of fleet respondents planning to acquire trucks in 2018 anticipate maintaining or increasing use of diesel engine powered trucks, indicating that diesel is still the powertrain of choice among the majority of work truck fleets. Additionally, the survey indicated that biodiesel is now the most popular alternative fuel option on the market, followed by E85, CNG and Electric Hybrid. Survey data shows 18 percent of fleet participants use biodiesel now – up from 15 percent in 2017. And in terms of future alternative fuel interest, biodiesel also takes top honors, with more fleets planning to acquire or continue using biodiesel than any other alternative fuel option.

The National Biodiesel Board (NBB) is featuring some of the latest industry advancements this week at the Alternative Clean Transportation (ACT) Expo in Long Beach, California. On display will be a customized 2018 Freightliner Cascadia truck supplied by NBB member company Optimus Technologies® that can use B100 biodiesel, like the one that served as a backdrop for the National Biodiesel Conference stage.

Biodiesel, Fleet, Trucks

Report Says Icahn Refinery Received RFS Waiver

Cindy Zimmerman

Reuters published an exclusive report today citing two anonymous sources who claim EPA granted a small refinery hardship exemption to CVR Energy, owned by billionaire Carl Icahn, the power behind last year’s attempt to dilute the Renewable Fuel Standard by changing the point of obligation.

CVR Energy just released its 1st quarter earnings last Thursday, posting a net income of $66 million, compared to $22 million in the first quarter of 2017. CVR CEO Dave Lamp credited the increase to “a reduction to CVR Refining’s estimated Renewable Volume Obligation and lower Renewable Identification Number prices.”

Audio file – CVR Energy CEO Dave Lamp, 2018 Q1 report

The company’s Coffeyville, Kansas refinery has a capacity of 132,000 barrels per calendar day (bpcd) and the Wynnewood, Oklahoma has a 74,500 bpcd capacity – just under the 75,000 barrel cut off for a “small refinery” under the EPA’s definition.

During a House Energy subcommittee hearing last week, EPA administrator Scott Pruitt was asked directly by Maryland Democrat Rep. John Sarbanes if Carl Icahn’s CVR Energy had applied for a waiver. Pruitt replied that he was “not sure” and did not directly answer whether the company might have received one, saying “These exemptions are governed by statute…” before being interrupted by Sarbanes saying, “You’re going to find that out for us..because it raises serious questions about conflicts of interest.”

Listen to that exchange here: Rep. Sarbanes questions EPA Admin. Pruitt

Audio, Ethanol, Ethanol News, Oil, RFS, RINS

RFA Urges CARB to Use More Ethanol

Cindy Zimmerman

The Renewable Fuels Association (RFA) is urging the California Air Resources Board (CARB) to allow greater market access for ethanol blended fuel to help the state reach its climate policy objectives.

According to comments submitted by RFA, ethanol has played a key role in the success of California’s Low Carbon Fuel Standard (LCFS) and could do more if certain regulatory actions are taken to allow greater market access.

CARB held a hearing last week to consider amendments that would expand the LCFS through 2030 and increase the stringency of the required carbon intensity (CI) reductions and RFA Executive Vice President Geoff Cooper provided oral testimony at the hearing in addition to the group’s written comments.

CARB’s own data show that ethanol is responsible for reducing GHG emissions by 14.5 million metric tons (CO2-equivalent), or 45% of the total reductions achieved under the LCFS to date, RFA noted in its comments. In addition, data released by CARB last week shows that the ethanol used in California has an average CI that is 31% lower than gasoline.

RFA’s comments offered several recommendations that would allow ethanol to make even greater contributions to the LCFS goals, including:

• Expediting approval of new pathway petitions for cellulosic ethanol produced from grain kernel fiber.
• Amending current regulations to allow for the sale of E15 (15% ethanol, 85% gasoline) in California. A recent study by Life Cycle Associates shows that introduction of E15 would significantly increase LCFS credit generation, reduce gasoline consumption, and enhance the near- and long-term sustainability of the program. If California allows the sale of E15 beginning in 2020, the study shows cumulative GHG reductions achieved under the LCFS increase by 15-19 MMT CO2e by 2030, depending on the mix of ethanol sources.
• Revising default lifecycle GHG assessment model assumptions regarding grain sorghum production.
• Beginning a process to consider other options for further decarbonizing the remaining liquid fuels in the California mark

Ethanol, Ethanol News, Low Carbon Fuel Standard, RFA

Ethanol Report on Pruitt and the RFS

Cindy Zimmerman

Environmental Protection Agency (EPA) administrator Scott Pruitt has been “unapologetic” under questioning this week about granting dozens of small refinery hardship exemptions, and Renewable Fuels Association president and CEO Bob Dinneen believes he will continue to do so unchecked.

In this edition of the Ethanol Report, Dinneen talks about how the exemptions have effectively cut the Renewable Fuel Standard (RFS) by over 1.5 billion gallons, and how he believes Scott Pruitt is working against the wishes of President Trump.

Listen here: Ethanol Report on Pruitt and the RFS

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Audio, Ethanol, Ethanol News, Ethanol Report, RFA, RFS

Pruitt Provides Vague Answers About RFS Exemptions

Cindy Zimmerman

The budget for the Environmental Protection Agency was the topic of two separate House hearings Thursday, but lawmakers spent the majority of the time addressing other concerns with EPA Administrator Scott Pruitt.

The Renewable Fuel Standard (RFS) was brought up immediately by House Energy and Commerce Subcommittee on Environment Chairman John Shimkus of Illinois, who made it clear he would like to see Congress make any decisions about changes in the program, rather than the agency. “Potential administrative actions (to change the RFS) hang like the sword of Damocles over efforts on Capitol Hill to reach an enduring, legislative solution to the problems of that program,” said Shimkus. Pruitt responded that there were administrative actions that he believes can be taken, such as transparency in the RIN market and granting the RVP waiver to allow year round sales of E15, but “Congress’ role is very important.”

Rep. Shimkus questions EPA Admin. Pruitt

One of the many subcommittee members from Texas, Rep. Gene Green, questioned Pruitt about the number of RFS small refinery hardship waivers that have been granted by EPA, saying that the oil industry agrees with the ethanol industry that information should be made public. Pruitt gave a vague response about the actual numbers, saying last year they received request numbering “somewhere in the mid-20s” for the 2016 obligations, but “we received more than that this year” for 2017.

Rep. Green questions EPA Admin. Pruitt

Iowa Democrat Dave Loebsack asked the administrator what he intends to do about the more than one billion gallons of biofuels required by the statute that have been waived away. “Under Section 211 of the Clean Air Act, the EPA administrator is required to reassign gallons that are waived under the small refiner exemption to other obligated parties,” said Loebsack, asking Pruitt if he had done so. “It’s my understanding that process has happened as it’s supposed to,” Pruitt replied. Asked if he would provide the names of refineries, Pruitt said, “Subject to the confidential business information.” Pruitt told another member that he was “not sure” whether Carl Icahn’s CVR Energy had applied for a waiver, and did not directly answer whether the company might have received one, saying “These exemptions are governed by statute.”

Rep. Loebsack questions EPA Admin. Pruitt
Audio, Ethanol, Ethanol News, RFS

RFS Architects Question EPA Waivers

Cindy Zimmerman

Former Sen. Byron Dorgan at 2018 National Biodiesel Conference

Two former senators who played key roles in developing the Renewable Fuel Standard (RFS) are calling on Congress to investigate the EPA’s recent waivers to major refiners and failure to follow the law.

Byron Dorgan (D-ND) and Jim Talent (R-MO) say EPA Administrator Scott Pruitt’s granting of multiple small refinery hardship waivers skirts the law and threatens to undermine the renewable fuels industry.

“Lawmakers from across the heartland have already demanded the EPA stop abusing these waivers, but Congress can and should do more. The public deserves real answers from Administrator Pruitt about handouts granted under cover of night,” said the two Senators, who are active in energy policy roles. Dorgan is now a senior policy adviser at Arent Fox, whose clients include the National Biodiesel Board, and Talent currently serves as Chair of Americans for Energy Security and Innovation (AESI), which supports renewable energy to reduce our dependence on foreign oil. Both helped write the RFS while serving in the Senate.

“The waiver provisions established by Congress provide flexibility in dealing with the smallest refining companies, producing fewer than 75,000 barrels per day, and only in unique cases presenting disproportionate economic hardship,” the senators say. “But the EPA has warped those provisions to grant tens of millions of dollars in regulatory handouts at the expense of farmers, biofuel workers, and American consumers.”

The National Biodiesel Board submitted a Freedom of Information Act Request to find out more from EPA about small refiner exemptions requested and issued. They also joined the American Soybean Association and the National Renderers Association urging President Trump to keep his promises to rural voters to uphold a strong RFS.

Biodiesel, RFS

Growth Energy Thrilled with Automotive Training Partnership

Cindy Zimmerman

A new partnership between the American Ethanol program and the biggest automotive technical institute in the country is an important step forward in Growth Energy‘s mission to show consumers the many benefits of high octane biofuels.

Growth Energy CEO Emily Skor says the new partnership is with Universal Technical Institute (UTI), the nation’s leading provider of technical training for automotive, diesel, collision repair, motorcycle and marine technicians. “We know that most Americans look to technicians at their local auto shops and dealerships for advice on how to maintain their vehicles, so working with Universal Technical Institute, the nation’s leader in training highly skilled automotive technicians, will ensure the experts advising consumers have all the facts on American ethanol performance,” said Skor.

As part of the agreement, Growth Energy will support the student resource center at UTI’s NASCAR Technical Institute in Mooresville, North Carolina. “What we want to do is bring the information that the auto enthusiasts have and bring it to the lay consumer,” Skor said.

Growth Energy has spent the past six months working with mechanics to build out the curriculum for the training program. “What we’ve learned is that mechanics either don’t know anything (about ethanol), or they have just heard the myths,” but after sitting down with the engineers who have built the engines and know how they run on ethanol, they have a more favorable attitude toward the fuel.

Learn more in this interview where Skor also comments on the latest news about EPA small refinery exemptions and getting Reid Vapor Pressure relief for E15. Interview with Growth Energy CEO Emily Skor on new partnership

Audio, automotive, Education, Ethanol, Growth Energy